How a business can lower healthcare costs for employees: 1 quick tip

how to lower healthcare costs pictureThis is an excerpt from the Las Vegas Review-Journal about the increasing costs Nevada businesses will face:

Several Western states, including Arizona, Utah and Colorado, already have agreed to federal grandfathering guidelines, Wright said. If Nevada fails to do the same, employees of small businesses will pay more for less, he said. And those costs could pass through to employees.

One small company with nine younger, male employees is paying $1,000 a month for a plan with a $500 deductible and 20 percent copays. The same coverage will cost $1,500 a month come renewal time in fall. The only way to get those premiums back down to $1,000 will be to kick up deductibles to $1,000, and boost copays to 30 percent to 40 percent of costs, Wright said.

“This is going to have a huge impact on Nevada,” Wright said. “Do businesses make fewer capital improvements because their health insurance costs double, or are they able to absorb that? Instead of increasing costs, are they forced to pass those costs on to employees? That’s what a lot of businesses are doing.”

Here is my point- why is this group paying $1,000 a month for their plan??  Nine young males need a $500 deductible? Really?

If I was their Broker, we would do a higher deductible plan, and use the savings to fund a small benefit bank. The benefit to the employee would be richer. Or, you could use the savings and do a Medical Bridge plan, but I would go for the benefit bank if I had any say in the matter.

The Brokers that keep thinking health insurance is a “benefit program” are doomed. Those Brokers who will grow (and do well) under the ACA will be those who understand, and implement, a complete benefits program.

– JR